It affected our internal management information system and reporting structure. We had to adapt our external segment reporting to reflect our internal structure. The changes were made during the year, making it difficult to interpret the segment information as several transactions fell into different reported segments in 2012. Also, it was not possible to recreate the new segment reporting information for 2011, limiting our ability to provide comparative information. On the other hand, it increases transparency.
As we applied the corridor method up to 2012, our equity position will be reduced by the application of the revised standard. But given the total shareholder equity of CHF 631 million, this will not substantially change our equity-related ratios.
Our aim was to reduce our high cash position. Meanwhile, our investments in Neodent and Dental Wings reduced our liquidity by CHF 266 million.
Neodent is growing nicely and is very successful financially. The 2012 profit contribution to Straumann was reduced significantly by the short-term effects of the IFRS purchase price allocation, i.e. amortization of the inventory step-up to fair value. This won’t recur in 2013, when we expect a positive contribution to IFRS earnings.
Little – assuming the Swiss National Bank maintains the euro above CHF 1.20.